scholarly journals Does US-China Trade War Matter on ASEAN Stock Market: Event-study Approach

2020 ◽  
Vol 4 (3) ◽  
pp. 161
Author(s):  
Budi Setiawan
Keyword(s):  
Stock Market ◽  
Event Study ◽  
Stock Prices ◽  
Financial Stability ◽  
Abnormal Returns ◽  
Study Approach ◽  
China Trade ◽  
The Us ◽  
Trade War ◽  
The Impact

The trade war between the US and China by imposing tariffs has the potential to affect global financial stability. As the largest economy in the world, the US and China had been trading goods and services globally. Then, when these countries have retaliated, the tariff war will affect the global supply chain, international trade, economy, and the stock market. This research examined the effect of the US-China trade war on ASEAN stock prices using an event-study approach. The result shows that the ASEAN stock market has positive abnormal returns during pre-event period (12%). In contrast, ASEAN stock markets shifted to negative abnormal return (-7.4%) in the short-term window, indicating that the stock market is efficient. Stock price reflects the information from the market quickly. However, the impact of the trade war on the ASEAN stock market is insignificant.

scholarly journals The Impact of COVID-19 on the Stock Price of Socially Responsible Enterprises: An Empirical Study in Taiwan Stock Market

2021 ◽  
Vol 18 (4) ◽  
pp. 1398
Author(s):  
Kuo-Jung Lee ◽  
Su-Lien Lu
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Stock Price ◽  
Abnormal Returns ◽  
Recovery Phase ◽  
Socially Responsible ◽  
Cumulative Impact ◽  
Study Approach ◽  
Price Performance ◽  
The Impact

This study examines the impact of the COVID-19 outbreak on the Taiwan stock market and investigates whether companies with a commitment to corporate social responsibility (CSR) were less affected. This study uses a selection of companies provided by CommonWealth magazine to classify the listed companies in Taiwan as CSR and non-CSR companies. The event study approach is applied to examine the change in the stock prices of CSR companies after the first COVID-19 outbreak in Taiwan. The empirical results indicate that the stock prices of all companies generated significantly negative abnormal returns and negative cumulative abnormal returns after the outbreak. Compared with all companies and with non-CSR companies, CSR companies were less affected by the outbreak; their stock prices were relatively resistant to the fall and they recovered faster. In addition, the cumulative impact of the COVID-19 on the stock prices of CSR companies is smaller than that of non-CSR companies on both short- and long-term bases. However, the stock price performance of non-CSR companies was not weaker than that of CSR companies during times when the impact of the pandemic was lower or during the price recovery phase.

scholarly journals THE IMPACT OF RESUMPTION OF FORMER TOP EXECUTIVES ON STOCK PRICES: AN EVENT STUDY APPROACH

2013 ◽  
Vol 14 (2) ◽  
pp. 292-302 ◽  
Author(s):  
Tai-Ning Yang
Keyword(s):  
Stock Market ◽  
Event Study ◽  
Stock Prices ◽  
Corporate Performance ◽  
Market Model ◽  
Top Executives ◽  
Study Approach ◽  
Practical Guidelines ◽  
Managerial Experience ◽  
The Impact

This study explored the impact of resumption of former top executives on stock prices based on market model for the listed corporations in Taiwan stock market. Top executives nowadays confront great challenges in acquiring new corporate accounts to meet agreed targets and drive rapid, profitable growth. Accordingly, corporations commonly decide to reinstate former top executives since their managerial experience is expected to improve corporate performance. The aim of this study is to provide practical guidelines for companies that are considering such decisions and favorable information that can help investors to adjust their portfolios in response to such potential decisions.

Market reactions to the inclusion of people with disabilities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Claudia Araceli Hernández González
Keyword(s):  
Event Study ◽  
Stock Prices ◽  
Stock Price ◽  
Abnormal Returns ◽  
People With Disabilities ◽  
Market Reactions ◽  
Content Type ◽  
Study Methodology ◽  
Research Advance ◽  
The Impact

PurposeThis study aims to provide evidence of market reactions to organizations' inclusion of people with disabilities. Cases from financial journals in 1989–2014 were used to analyze the impact of actions taken by organizations to include or discriminate people with disabilities in terms of the companies' stock prices.Design/methodology/approachThis research is conducted as an event study where the disclosure of information on an organization's actions toward people with disabilities is expected to impact the organization's stock price. The window of the event was set as (−1, +1) days. Stock prices were analyzed to detect abnormal returns during this period.FindingsResults support the hypotheses that investors value inclusion and reject discrimination. Furthermore, the impact of negative actions is immediate, whereas the impact of positive actions requires at least an additional day to influence the firm's stock price. Some differences among the categories were found; for instance, employment and customer events were significantly more important to a firm's stock price than philanthropic actions. It was observed that philanthropic events produce negative abnormal returns on average.Originality/valueThe event study methodology provides a different perspective to practices in organizations regarding people with disabilities. Moreover, the findings in this research advance the literature by highlighting that organizations should consider policies and practices that include people with disabilities.

scholarly journals Is ESG Relevant to Electricity Companies during Pandemics? A Case Study on European Firms during COVID-19

2022 ◽  
Vol 14 (2) ◽  
pp. 852
Author(s):  
Florin Teodor Boldeanu ◽  
José Antonio Clemente-Almendros ◽  
Ileana Tache ◽  
Luis Alberto Seguí-Amortegui
Keyword(s):  
Event Study ◽  
Stock Prices ◽  
Initial Phase ◽  
Negative Impact ◽  
Abnormal Returns ◽  
Negative Influence ◽  
Electricity Sector ◽  
Renewable Electricity ◽  
Study Approach

The electricity sector was negatively impacted by the coronavirus disease (COVID-19), with considerable declines in consumption in the initial phase. Investors were in turmoil, and stock prices for these companies plummeted. The aim of this paper is to demonstrate the significant negative influence of the pandemic on abnormal returns for the electricity sector, specifically for traditional and renewable companies and the influence of ESG scores, using the event study approach and multi-variate regressions. Our results show that the pandemic indeed had a negative impact on the electricity sector, with renewable electricity companies suffering a sharper decline than traditional ones. Moreover, we find that ESG pillar scores affected electricity companies differently and are sector-specific. For renewable electricity companies, the returns were positively influenced by the environmental ESG scores and negatively by governance ESG scores.

Testing Market Reaction On Stock Market Delisting In Russia

2021 ◽  
Vol 15 (3) ◽  
pp. 14-27
Author(s):  
Елена Моисеевна Рогова ◽  
Maria Belousova
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Statistical Significance ◽  
Abnormal Returns ◽  
Global Market ◽  
Public Companies ◽  
Market Participants ◽  
Study Methodology ◽  
Available Information ◽  
The Impact

This paper expands the available information on the effects of delisting in Russia, and represents a rare empirical analysis of the impact of external events on securities prices in this major global market. We seek to evaluate how stock prices of competing companies fluctuate around the dates of stock market delisting announcements and completion. We analyse stock prices as correlated with company delisting events from 2004 to 2019 on 552 companies on the Russian MOEX Exchange. The event study methodology is used to evaluate the abnormal returns of rival companies close to relevant delisting dates. These data were checked for statistical significance using the standardised Patell residual test. The results indicate a significant competitive effect on stock prices both on the dates of delisting announcement and on completion, with more significant returns close to announcement dates. These effects were found to influence the prospects not just of individual groups of companies, but of all market participants. We may conclude from our results that delisting is not an event limited in effect to only one company, but impacts the industry as a whole, temporarily changing its value. As such, it will interest both shareholders and managers of public companies, and any participants of industries in which delisting occurs.

scholarly journals Using rival effects to identify synergies and improve merger typologies

2011 ◽  
Vol 9 (4) ◽  
pp. 310-335 ◽  
Author(s):  
Joseph A. Clougherty ◽  
Tomaso Duso
Keyword(s):  
Stock Market ◽  
Event Study ◽  
Methodological Approach ◽  
Horizontal Mergers ◽  
European Continent ◽  
Market Data ◽  
Merger Activity ◽  
The Us ◽  
Anglo American ◽  
The Impact

Differentiation of collusive and efficiency-based synergies in horizontal mergers has proven difficult. The authors propose a theory-backed methodological approach to classify mergers that yields greater information on merger types and merger effects. Moreover, the methodological approach distinguishes between mergers characterized largely by collusion-based synergies and those characterized largely by efficiency-based synergies. Crucial to the proposed method is that it considers the impact of merger events not only on merging firms, as is common in the literature, but also on non-merging rivals. The authors demonstrate how the proposed approach clarifies the nature of merger activity through an event-study procedure based on stock market data on samples of large horizontal mergers drawn from the US and UK (an Anglo-American sub-sample) and from the European continent the authors demonstrate how the proposed schematic clarifies the nature of merger activity.

Graphic warning labels and the demand for cigarettes

2016 ◽  
Vol 26 (2) ◽  
pp. 169-174 ◽  
Author(s):  
Martha A Starr ◽  
Keith Drake
Keyword(s):  
Stock Prices ◽  
Abnormal Returns ◽  
Warning Labels ◽  
Negative Effects ◽  
Share Prices ◽  
Study Approach ◽  
Cigarette Demand ◽  
The Us ◽  
The Usa ◽  
Graphic Warning

BackgroundIn 2010, the US Food and Drug Administration (FDA) proposed requiring tobacco companies to add graphic warning labels (GWLs) to cigarette packs. GWLs are large prominently placed warnings that use both text and photographic images to depict health risks of smoking. The companies challenged FDA's authority on First Amendment grounds; the courts accepted that FDA could compel companies to add GWLs, but argued that FDA had not established that GWLs would significantly reduce smoking.ObjectiveThis paper adds new evidence on the question of whether GWLs would have reduced cigarette demand, by examining whether tobacco companies’ share prices fell unusually after news indicating a higher likelihood of having GWLs, and rose on the opposite news. Such findings would be expected if investors viewed GWLs as likely to reduce cigarette demand.MethodsAn event-study approach is used to determine whether the stock prices of US tobacco companies rose or fell unusually after news events in the period when GWLs were proposed, finalised, challenged and withdrawn.FindingsTobacco companies’ stock prices indeed realised significant abnormal returns after GWL news, consistent with expected negative effects on cigarette demand. Our estimates suggest investors expected GWLs to reduce the number of smokers by an extra 2.4–6.9 million in the 10 years after the rule took effect.ConclusionsThese findings support the view that the GWLs proposed by FDA would have curbed cigarette consumption in the USA in an appreciable way.

scholarly journals The United States-China Trade War: Empirical Assessment

2020 ◽  
pp. 35-45
Author(s):  
Victor Adjarho Ovuakporaye
Keyword(s):  
United States ◽  
Global Economy ◽  
The United States ◽  
International Economy ◽  
Trade Relation ◽  
Empirical Assessment ◽  
China Trade ◽  
The Us ◽  
Trade War ◽  
The Impact

This paper aims to explore the US-China trade war by looking at various issues surrounding the US-China trade relation. The US-China trade war had been imminent since January 2018, meritoriously commenced on 6 July 2018, which is still ongoing. The US imposed sanctions on various Chinese goods, which was counter by the Chinese side also. Both side have felt the effect of the trade war though China felt the impact more than United States. Though, both nations have recently held positive trade talks which leads to the first phase of negotiation the trade war is still ongoing. If the partnership between the United states and China collapses, this will also end up harming the global economy severely since they are crucial cornerstones of the international economy.

Spillover effects of the US monetary policy on the Indian trilemma

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Harpreet Singh Grewal ◽  
Pushpa Trivedi
Keyword(s):  
Monetary Policy ◽  
Event Study ◽  
Spillover Effects ◽  
Subject Area ◽  
Open Market ◽  
Content Type ◽  
Study Approach ◽  
The Us ◽  
The Impact ◽  
Us Monetary Policy

PurposeThe purpose of this paper is to investigate the impact of the US unconventional monetary policy surprises on the management of trilemma in India.Design/methodology/approachThis paper uses the event study approach along with OLS and MANOVA to examine the impact.FindingsThe results validate the existence of trilemma in India for the period from October 2008 to December 2017. The results also show that monetary policy independence still exists in India in the wake of greater spillover effects during the Federal Open Market Committee announcement days. The spillover effects on USD-INR exchange rates and capital flows are found to be statistically significant. The MANOVA results show that the trilemma in India is influenced by around 20% by the changes in the US monetary policy.Originality/valueThe above approach of event study combined with MANOVA in this subject area has not been used before to the best of the authors’ knowledge. Further, there are only a few studies that exist on the spillover effects of the US monetary policy actions on the management of trilemma in India.

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